My reducing pension pot

heyjoe1a

Hi
I recently reached retirement age and my small private pension (£23,000 and falling) with a prudent insurance company was available for me to take as an annuity on 1/2/14.
Unfortunately I was not at home during this period and I didn't arrive home until 21/2/14.
I asked the ins co. to re-quote. When it arrived the total amount of the fund had reduced by £1,300.
Even more irritating is the re-quote I didn't request, which dropped on the doormat this morning. The fund has taken a further hit of £2000.
Can the insurance company do this legally. I've had no letter from them informing me that they intend reducing my fund.

Thanks for any advice

kidmugsy

heyjoe1a wrote: »

Hi
Can the insurance company do this legally. I've had no letter from them informing me that they intend reducing my fund.

Is it a With Profits policy? If so it's conceivable that you lost a terminal bonus by failing to annuitise on the contractual date.

If that guess is right, there's no reason why they should write to you, since the terms and conditions were presumably agreed by you when you signed up. In your shoes I'd study your T&Cs to see whether they've tried silently to change them, or even have just made a blunder.

dunstonh

Can the insurance company do this legally.

Investments can and will go down as well as up. The values can change daily. The markets fell back earlier in the year and a drop in value would not be unexpected.

However, a £3300 drop on a £23k fund doesnt sound right.

heyjoe1a

Thanks Chaps. I have heard back from my prudent insurance company this pm and they have acknowledged that they may have a problem. They're not sure how these figures are so different, but they assure me that I will not be disadvantaged. Result in waiting!
Cheers:T

atush

Do let us know what happens when they come back to you.